Study: Many Internet Shoppers Open to Any Brand When Starting Search
Many new- and used-car shoppers hit the lots with a specific car in mind. But according to the J.D. Power 2013 New AutoShopper Study released this week, more than half of the younger — Generation Y — buyers who began their search on the Internet for a new car may be open to consider any brand that suits their lifestyle.
Findings like these give dealers room to explore options with potential buyers and perhaps show them some brands and units they might not have found themselves.
And besides Generation Y, the study found that overall, among new-vehicle buyers who use the Internet in the automotive shopping process, half are open to any brand when they initially begin to shop, according to the study results.
The study — which analyzes how new-vehicle buyers use digital devices (computers, smartphones and tablets) to gather information prior to purchase, as well as which websites and apps are used — showed that 50 percent of all automotive Internet shoppers are open to any brand at the beginning of their search.
This number rises to 54 percent with Generation Y shoppers. This generation tends to be more tech savvy over all, as 47 percent use smartphones in their shopping process, “which is more than any other demographic,” J.D. Power reported.
Overall, which may not come as a surprise, 79 percent of new-vehicle buyers use the Internet to research their new vehicle purchase during the shopping process, according to the study.
Arianne Walker, senior director, automotive media and marketing at J.D. Power, explained that it is becoming increasingly important for manufactures and third-party sites to keep Generation Y buyers in mind, since many of them come into the shopping process with no set vehicle in mind.
“It is important for brands and websites to pay special attention to Gen Y buyers, as they are increasing in market share at the greatest rate among all new-vehicle buyers and now comprise more than 20 percent of all retail sales. Automotive manufacturers have a great opportunity to influence these buyers during their shopping process, particularly since so many of them begin the process fairly open minded,” said Walker.
“Additionally, the digital presence of the brand through mobile advertising and content across mobile-accessible sites and apps may be a great way to reach Gen Y buyers, since we see almost half use a smartphone during the shopping process,” Walker continued, stressing the importance of mobile devices.
The desktop or laptop continues to be the primary auto shopping tool for Internet shoppers, but mobile usage has risen quite a bit since last year.
Here are a few highlights from the study:
—Tablet and smartphone usage has increased 39 percent and 15 percent, respectively, year-over-year.
—The percentage of automotive Internet shoppers using tablets came in at 25 percent.
—The percentage of automotive Internet shoppers using smartphones came in at 23 percent.
—Thirty-four percent of automotive Internet shoppers use multiple devices, including desktop/laptops, smartphones, tablets and gaming consoles.
Where They are Going?
The study has showed us how Internet shoppers are searching for vehicles, but the question remains: Where are they going?
According to the study, a significant 98 percent visit manufacture sits during their shopping process.
Next up was dealer sites, with 83 percent. Third-party sites came next with 80 percent, and only 7 percent visited social media sites during the shopping process.
Which were the most helpful?
Internet shoppers more frequently indicate that third-party (54 percent) and manufacturer (52 percent) websites are very helpful during the new-vehicle shopping process, compared with dealer and social media sites/apps, J.D. Power reported.
Commenting on the results, Walker said, “As automotive Internet users continue to rely heavily on automotive manufacturer and third-party websites, an opportunity is created for sites to differentiate themselves further by providing engaging content and useful shopping tools that target consumers at each stage of the shopping process.”
How Long It Takes
Wrapping the study results up, J.D. Power reported that on average, the entire vehicle-shopping process takes approximately four months for Internet shoppers.
These shoppers visit 10 automotive websites on average before buying a new right, including third-party, dealer and manufacturer sites.
Lastly, 90 percent or more of automotive Internet shoppers use model information and vehicle pricing as influential factors in the buying process.
Interestingly, only 19 percent access dealer ratings/reviews prior to purchase.
Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.